“The market has definitely been hit by a cooling effect,” he said. “There’s also a lot of property for sale, buyers have a lot of choice, and the market is finding its own level between [the price expectations of] vendors and buyers.”

More than 20 people squeezed into the property to watch it go under the hammer. Photo: Steven Woodburn

Listing numbers over spring and summer are up 20 per cent compared to the same period last year, and clearance rates have taken a hit.

Last weekend, Sydney’s preliminary auction clearance rate dropped to a two-year low of 58.2 per cent. More than 100 vendors also got cold feet, meaning 13 per cent of auctions scheduled for December 9 were withdrawn.

There were 510 listed auctions in Sydney on Saturday, as the auction season winds up for the year. By evening, Domain Group had recorded a preliminary auction clearance rate of 69.7 per cent from 182 reported results. Twenty-nine auctions were withdrawn and agents failed to report the results of 299 auctions.

Had the 76-square-metre apartment been on the market in September — when Mr Farah sold a nearby comparable apartment at 3/152 Marine Parade for $1.52 million — it could have been a different story.

He said vendors had been slow to adjust their expectations to market conditions, while buyers were increasingly holding back at auction, with hopes they could negotiate a better deal if the property passed in.

Mr Farah said he expected a sale price between $1.3 and $1.4 million would be negotiated in the coming days.

One of four registered bidders makes an offer on the property. Photo: Steven Woodburn

Among the unsuccessful bidders was a local family who tapped out of bidding at $1.27 million.

“We thought it was a fair price,” said Kellesi from nearby Tamarama. “We’d hoped it could be the next step up for us, a bigger place, closer to the beach, with parking,” said her partner, Steve.

He added it was frustrating to see the apartment pass in, especially due to the time and money buyers spent doing their due diligence before an auction.

Selling agent Martin Farah speaks with the bidder that made the final offer of $1.28 million. Photo: Steven Woodburn

The bidding kicked off at $1.1 million, after which a local couple jumped in with a bid of $1.35 million, in an attempt to quickly knock out the competition.

It worked. Only three of the six registered bidders made offers on the home, before it sold for $1,405,000 to the couple, who were keen to buy before their upcoming wedding. The result was more than double the $659,000 records show the home last sold for in 2011.

A two-bedroom semi at 147 Queen Street, Ashfield sold for $1,405,000. Photo: Supplied.